During the influenza epidemic of December 1967 - January 1968 the Emergency Bed Service (EBS) encountered serious difficulties in securing admission to hospital for many acutely ill patients. In the light of these experiences the King's Fund decided to appoint a working party to investigate the effect of coloured warnings on hospitals in the London area. It found that although gaining admission was often difficult, with between 20 and 30 per cent being refused admission until 'refereed' into hospital, there were large numbers of empty beds. The report goes on to give reasons why this situation occurred, and a number of detailed recommendations are put forward.